Guidelines of RERAs
Earlier, before RERAs Regulations in real estate sector there was multiple malpractices which had always been suffered buy home buyers. Developers incomplete or delayed project was a common practice in the real estate market.
At that time multiple cases as usual come into existence but the worse scenario was then, when after living in the society for long time 15-20 years, property owners vacant the society due to builder mistake for not taken approval from the government for the project, to remove all these issues and for better transparency between home buyers and promoters of the project RERA act plays a vital role.
Guidelines of the RERAs for the real estate developers come into existence since 2016 after having many issues by the developers and at the end home buyers suffered the problems. Government brings the legislation to regulate the Real Estate market and control frauds and scams and build confidence among home buyers to buy the property more confidentially . RERAs full form is “REAL ESTATE REGULATORY AUTHORITIES”.
We will discuss here about all those major Loopholes and Malpractices which builder and agents used to do in real estate sector.
- Provide wrong information about project to the buyers
- Use the customers fund for other projects or for different function
- Provide poor quality of construction
- Delay project from the given date of completion
- Provide special booking rate
- Date of completion not mention in Agreement
- Change project developments without any information
- Refer to a particular institution for loan facilities with low rate of interest
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How RERA will benefit us:
RERAs does provide rules and regulations with some exceptions to sell or promote residential and commercial projects. It has become mandatory for all projects to register under RERA and then to promote or sell the projects.
Project developers can not do the booking process without registration under the RERA. Real Estate channel Partners or Agents also need to register under RERA.
At the time of the registration, the developer needs to upload all the details of the projects on the website of the RERAs. These include the site and layout plan, and completion of the real estate project.
As per the Guidelines of RERAs 70% collected amount from buyers of the project must be in the separate bank account and that should be used only for the construction of that project.
The state government has the authority to change the amount to less than 70%.
The Bill establishes state level tribunals called Real Estate Appellate Tribunals. Decisions of RERA can be appealed in these Tribunals.
If a developer wants to launch new project or any project which carpet area is more than 500 meter Or 8 apartments or more than 8 apartments that must be register under RERAs.
According to RERA the promoter have to upload all the details like project layout, carpet area, quantity and space of storage and so forth.
RERA does provide an individual number of each project through the help of that anyone can check all the details regarding that particular project on the MAHARERA website. It helps to provide transparency about the project avoid the malpractice, creating with home buyers.